Introduction to Information Systems

Management (ISM)
Week (1) Lecture

Corporate Strategy & IT Governance (9276)

1

Information Systems Management PG (7109)

Semester 2, 2023
Unit Overview
The unit addresses management issues arising from the organisational use of
information systems and their associated technology.

This will range from strategic related to:

• Governance
o IT governance
o Strategic planning
o Governance frameworks
o Enterprise architecture

• Operations
o Applications portfolio management
o IT service management and related frameworks
System Hierarchy
Information Technology
Defined as “all forms of technology used to
create, store, exchange, and use information”
(Pearlson et al., 2016, p. 15).

• Hardware
• Software / applications
• Database
• Networks
• Servers (Pearlson et al., 2016)
• etc.
System Hierarchy

Information Systems
Defined as “the combination of technology (the
“what”), people (the “who”), and process (the
“how”) that an organisation uses to produce and
manage information” (Pearlson et al., 2016, p. 15).

Consists of integrated components including:

• People
• Technology
• Process (Pearlson et al., 2016)
Which is Which?

Involves the creation, New technological

sharing, and distribution inventions, products,
of information that is protocols, and standards
generated by computers that support information
and their users. systems.

Processes and
Integration of computer procedures that enable
with telecommunication the effective use of data
equipment for storing, to support business
retrieving, manipulating processes and decision-
and storage of data. making.
Which is Which?
IS IT IT
Involves the creation, New technological
sharing, and distribution inventions, products,
of information that is protocols, and standards
generated by computers that support information
and their users. systems.

IT IS
Processes, and
Integration of computer procedures that enable
with telecommunication the effective use of data
equipment for storing, to support business
retrieving, manipulating processes and decision-
and storage of data. making.
Information Systems Management (ISM)

• ISM sits above information technology

and information systems.
• ISM is concerned with the
management of how information is
handled in organisations.
• ISM involves processes of planning,
implementing, and reviewing the
operations of information systems to
support the organisation.
(Pearlson et al., 2016)
Information Systems Management Context

Based on a diagram from Beynon-Davies (2002) Information Systems, Palgrave, p432, adapted by D Kleeman
Information Systems Management Context
Key points from the diagram (previous slide):
• IS management starts by understanding organisational processes – what do we need
to do, what information is needed to support these activities, the information
systems and technologies that will support those needs.
• Uses models and frameworks so things are not done in an ad hoc manner.
• IT departments and functions are becoming more accountable under ISM and need
to define their services, making sure they operate within the expectations of
organisations (SLAs).
• Two key areas the IT department tends to do – implementing strategy and managing
infrastructure.
→ From IS strategy, to IS architecture to IS infrastructure
Information Systems Management Context

• Controlling IS Infrastructure
Includes maintaining inventory of the
current IS infrastructure and maintenance
of the systems. Controls Implements

• Implementing IS Strategy
Managing the actioning of the IS plans (in
the forms of programs and projects) and
Associated Associated
monitoring their implementation, Infrastructure Strategy
expenditures and budgets, evaluating
completed information systems and
monitoring their success and lessons (Adapted from Beynon-Davies (2002) Information Systems, p. 434)
learnt.
 Evolution of IT and IS Management
• In the 1950s and 1960s: Electronic data processing (EDP)
systems
– Initially for government/military use
– Businesses used it for automation in accounting and
finance
– Data processing was key function
– Computers were costly, large, not widely used
• In the 1970s: The notion of IS or MIS expanded to
include management support systems – DSS
• In the 1980s: Began to be called information resource
management (IRM) or Strategic information systems
(SIS) - ERP
Evolution of IT and IS Management … con

• PCs became more prevalent in organisations during the 1980s and 1990s
• Cost, size of hardware continuously decreasing
• Business staff and IT staff began to interact – through the
Information Centre
• IT became a source of competitive advantage
• In the 1990s: Many decentralized systems flourished, built on
the ‘end-user computing era’
• Networks, the Internet, and e-mail became a necessity
• Major IS policy issues are now important
• Frameworks such as ITIL and other aspects of best practice
emerged IBM PC in 1981
• Early 2000, IT governance emerged
 Expanding Role of IT

• No longer just serves a business – integral in business strategy

• IT service management (ITSM) and delivery
• Impacts every area of business
• Extended outside the organisation
• How does IT function vs. the entire organisation
– Strategic enabler or order taker?
– Centralised or distributed service provision?
• Responsible for the integration of information
• Development and management of applications portfolio
• Broker for IS and IT services
(Luftman 2004 p.5)
IT Management Challenges
• Many IS managers have difficulty managing successfully
– Changing technology and its use require changing skill sets
– Increasing complexity
– Legacy systems
– Evolving technology introduces complexity – opportunities and challenges are increasing
• Pervasiveness and ubiquity of IT
– IT is part of everything we do in organisations today
– Cloud and mobile computing presented opportunities but also significant challenges
• Applications and data
– Becoming more sophisticated
– Increasing in number, require more connections – data silos can emerge
– Legacy systems are increasingly fragmented
– Big data, data analytics and data governance needs
IT Management Challenges
• Agility and rapid response to user demands
– ‘IT Is Too Darn Slow (And Needs To Get Faster)’ – DevOps model
• Users and their involvement
– User engagement and required skillset
• Service provision with cloud computing and outsourcing
– Service delivery problems by outsourcers
– Failure to meet contractual agreements or IT related regulations
– Poor IT performance from audit reports
• Shadow IT
– Acquired and managed at the local level
– No proper IT governance
 IT Management Challenges
• Information security and cyber security
• IT budgets have been flat to negative since Y2K
• Pressures to shift expenditure from business as usual (BAU) to new developments and
initiatives
– 80/20 spending trap – 80% of IT expenditure on BAU
– Increasing pressures to be more efficient with the BAU operations
• Increasing pressure to lead the organisation’s digital transformation, rather than just
facilitating it
• Hype Cycles and Miracle Cures
– Some technologies are hyped up and have inflated expectations
– Promised to solve problems but often creates problems
– Long history of IT projects failure
Gartner Hype Cycle for Digital Government Technology 2019

https://www.gartner.com/interactive/hc/4003864
Gartner Hype Cycle for Digital Government Technology 2021

https://www.gartner.com/interactive/hc/4003864
Compare to 2014
ISM and IT Governance

• IT governance as a concept that came around 2000

• Strategic rather than operational
• IT Governance is a sub discipline of corporate governance
• Ensure the effective use of IT in enabling an organization to achieve its strategic
goals
• Involves the evaluation, selection, prioritization, and funding of competing IT
investments; oversee their implementation and performance
• Shows how organizations align IS/IT strategy with business strategy
• Ensure effective use of IT within the organization and that IT investments will return
value to the organisation
• Responsibility of executives (CIO) and the board of directors
References
1. Grant, K., Hackney, R. and Edgar, D., 2009. Strategic information systems
management. Delmar Learning.
2. Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2016. Managing and using
information systems: A strategic approach. John Wiley & Sons.

Readings
Chapter 1: Luftman, J.N., Bullen, C.V., Liao, D., Nash, E. and Neumann, C., 2004.
Managing the information technology resource: Leadership in the Information Age.
Prentice Hall New York.

** Most of the recommended reading books have useful introductions to IS management that highlight
the different perspectives on ISM issues.
Questions?